Walgreens Boots Alliance Inc (WBA)
Profitability ratios
Return on sales
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 17.87% | 18.38% | 18.61% | 18.91% | 19.38% | 19.75% | 20.14% | 20.80% | 21.33% | 21.86% | 22.13% | 21.61% | 20.54% | 19.61% | 18.61% | 18.38% | 18.75% | 19.51% | 20.60% | 21.34% |
| Operating profit margin | -9.48% | -9.31% | -9.79% | -0.54% | -4.93% | -5.30% | -5.30% | -4.55% | 1.05% | 2.32% | 3.38% | 3.10% | 1.71% | 1.49% | -0.56% | -0.34% | 0.77% | 0.80% | 2.89% | 3.20% |
| Pretax margin | -4.98% | -4.67% | -5.11% | 0.06% | -3.53% | -3.84% | -3.73% | -3.55% | 3.25% | 4.59% | 5.59% | 5.64% | 2.35% | 1.88% | -0.45% | -0.42% | 0.58% | 0.66% | 2.78% | 3.02% |
| Net profit margin | -5.82% | -3.99% | -4.18% | 0.40% | -2.20% | -2.42% | -2.35% | -2.23% | 3.27% | 4.01% | 4.65% | 4.79% | 1.86% | 1.67% | -0.45% | -0.49% | 0.33% | 0.55% | 2.53% | 2.71% |
The profitability ratios of Walgreens Boots Alliance Inc show a declining trend in the gross profit margin over the past few years, starting at 21.34% in February 2020 and decreasing to 17.87% in August 2024. This may indicate a decrease in the company's ability to generate profits from its core operations.
The operating profit margin and pretax margin also exhibit a fluctuating pattern, with negative values recorded in some periods. This suggests that the company may be facing challenges in controlling its operating expenses and generating profits before and after taxes.
The net profit margin, which reflects the company's profitability after all expenses have been deducted, displays a similar trend of volatility. However, the net profit margin has generally decreased over the years, reaching -5.82% in the latest period ending in August 2024.
Overall, the declining trend in profitability ratios for Walgreens Boots Alliance Inc indicates potential issues with cost management and revenue generation, which may require further analysis and strategic interventions to improve the company's financial performance.
Return on investment
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -17.37% | -16.33% | -16.79% | -0.79% | -7.12% | -7.36% | -7.06% | -6.51% | 1.54% | 3.36% | 4.93% | 4.31% | 2.88% | 2.22% | -0.86% | -0.53% | 1.23% | 1.29% | 4.44% | 4.82% |
| Return on assets (ROA) | -10.66% | -7.00% | -7.17% | 0.59% | -3.19% | -3.36% | -3.13% | -3.19% | 4.81% | 5.80% | 6.78% | 6.66% | 3.13% | 2.49% | -0.68% | -0.78% | 0.52% | 0.88% | 3.88% | 4.08% |
| Return on total capital | -37.37% | -29.90% | -32.39% | 2.43% | -15.48% | -15.81% | -15.11% | -15.13% | 13.11% | 17.75% | 22.12% | 22.52% | 13.23% | 11.89% | -0.14% | 0.01% | 4.34% | 4.58% | 13.03% | 13.96% |
| Return on equity (ROE) | -82.68% | -42.60% | -44.77% | 2.95% | -15.38% | -15.74% | -14.84% | -14.41% | 17.16% | 20.49% | 23.55% | 24.48% | 10.85% | 10.35% | -2.92% | -3.47% | 2.21% | 3.67% | 14.73% | 15.65% |
Based on the profitability ratios of Walgreens Boots Alliance Inc over the past few years, there are several notable trends:
1. Operating return on assets (Operating ROA) has been consistently negative, indicating that the company is not efficiently generating profits from its assets. The trend shows a decline in performance over the last few quarters.
2. Return on assets (ROA) has also been negative in recent periods, implying that the company's overall profitability in relation to its total assets has been weak. However, there was a slight improvement in ROA in the most recent quarter compared to the previous ones.
3. Return on total capital has been negative in most periods, indicating that the company is not effectively utilizing its total capital to generate returns. The trend has been volatile with occasional positive performances but is generally showing a downward trajectory over time.
4. Return on equity (ROE) has been mostly negative, suggesting that shareholder value has been decreasing in relation to the company's equity. The recent trend shows a mix of negative and positive performances, with a slight improvement in the most recent quarter compared to previous ones.
Overall, the profitability ratios of Walgreens Boots Alliance Inc reflect challenges in generating profits efficiently and effectively managing capital and equity. The company needs to address these issues to improve its overall financial performance and enhance shareholder value.
See also:
Walgreens Boots Alliance Inc Profitability Ratios (Quarterly Data)